From the President

The Paramount Bed Group was established in 1947. The Group started out as a manufacturer of hospital beds and, against the subsequent backdrop of demographic aging, later branched out into senior care facilities and visiting nursing care while developing a diversity of products and services.

Business Results for the Fiscal Year under Review

The Company’s consolidated net sales were ¥73,199 million (down 1.2% compared with the previous year). Aside from sales to facilities for the elderly, the maintenance business and the rental wholesale business for assistive products were solid, while sales to medical facilities in Japan were down.Regarding profi ts, operating income was ¥11,015 million (up 14.0%), and net income attributable to owners of the parent was ¥9,035 million (up 41.4%) due primarily to cost reductions in production and to the eff ects of a decrease in prices of items procured from overseas because of the yen’s appreciation.For dividend payments for the fi scal year under review, a ¥10 per share commemorative dividend celebrating Paramount Bed’s 70th anniversary was added to the year-end dividend of ¥40 per share for a total of ¥50 per share. As a result, including the interim dividend of ¥40 per share, the annual dividend was ¥90 per share.For the dividend payment for the fi scal year ending March 2018, we plan to set both the interim dividend and the year-end dividend at ¥45 per share from the standpoint of stable, ongoing returns, for an annual dividend of ¥90 per share. We are wholly committed to providing the best profi t returns to shareholders going forward.

Future business development

The Paramount Bed Group announced the medium-term business plan, or the 2020 Plan, which runs for fi ve years from April 2016 to March 2021. The major targets of this plan are ¥100 billion in consolidated net sales and ¥14 billion in consolidated operating income in the fi scal year ending March 2021. The key policies of the plan are to (1) maintain/expand existing business areas, (2) to accelerate overseas business expansion, and (3) to strengthen R&D and create business models serving as “buds” of new growth. These activities aim to drive sustainable development and to boost corporate value.In overseas business, we are focusing in particular on Asia and Central and South America. We plan to build assembly plants during the fi scal year ending March 2018 in Mexico and India, where we already have sales hubs. Through local production, we aim to minimize the burden of customs duties and further increase sales.For new business models, we will strive to further popularize our Smart Bed SystemTM, which enables the integrated management of a variety of biological information in addition to measuring a patient’s heart rate and respiration rate in real time from the bed without the need to wear a device. By introducing this system, customers can expect to save on labor and to increase accuracy, among other benefi ts, amid concerns over further staff shortages at medical and nursing facilities.We aim to drive steady growth in the Japanese and overseas markets by strengthening ties between Group companies. In all our eff orts, we look forward to the continued understanding and cooperation of our shareholders.